If It's Tuesday, It's "Short Squeeze" Time

Tyler Durden's picture

Who could have seen that coming? "Most shorted" stocks, having recovered from the early squeeze, have been monkey-hammered higher once again as the confidence and home sales data hit. It's Tuesday after all - so why not buy the junkiest of the junk and ride it for a 3x beta outperformance...



UPDATE: POMO ends and the short squeeze is over...


Charts: Bloomberg

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slaughterer's picture

Dubai money coming in.  They are smart.

flacon's picture

Every Tuesday morning I think "It's going to be different this time" and every Tuesday I am wrong. 

NoDebt's picture

Who the hell are all these short sellers?  Do they enjoy having their heads bashed in over and over and over and over?

Soul Glow's picture

The Fed can levitate stock prices until they can't, and then they will short stocks like they did in the Fall of '08.  The PPT can make money on both sides of the trade like everyone else.

Dr. Engali's picture

That's not going to happen this time. When the rug is finally pulled out from under this market, it's going to vaporize and there won't be anybody left to collect that short position from. There will be no 'money' to be made on the downside.

flacon's picture

Engali, then we had better all buy calls and join the madness. 

Dr. Engali's picture

I've been taking advantadge of the printing and BTFD, taking profits and buying real assets for a long time now. I gave up trying to short this pig years ago. 

DavidC's picture

Dr. Engali,
There is nothing that persuades me that 'this time is different'. This is a bubble and it WILL pop.


Dr. Engali's picture

Yes it will, but not in the manner that you believe.

halfasleep's picture

doc, honest question, why do you believe that this time will be different than any of the other crashes of the past century+? why would tptb want to discontinue this wash-rinse-repeat fleecing, as it seems to simple to regurgitate this narrative?

pound the vix's picture

I got burned last crash by the fed banning short sales.  I had puts on stocks only to wake up to a massive short sqeeze because they banned shorts on GE, and the banks.  I was right on how bad these companies were, but got killed.

Dr. Engali's picture

It's hard to believe that they keep coming back for more punishment.  

NoDebt's picture

It's almost like there's...... a pattern or something.

"Thanks, Captain Obvious"

Soul Glow's picture

I went short in April after being long since the Spring of '09.  When everyone's on one side of the boat I usually get in the life raft.

DavidC's picture

You and me both Flacon - I waited for the ramp up, sold into it...and it's carried on going up.


flacon's picture

We will know that the oceans have turned to lemonaid when bond prices are up and bond yields are up at the same time. ;)

flacon's picture

François Marie Charles Fourier (7 April 1772 – 10 October 1837) was a French philosopher.: "Fourier is best remembered for his writings on a new world order based on unity of action and harmonious collaboration. He is also known for certain Utopian pronouncements, such as that the seas would lose their salinity and turn to lemonade, and a coincidental view of climate change, that the North Pole would be milder than the Mediterranean in a future phase of Perfect Harmony"

NoDebt's picture

Now THAT'S global warming I can live with!

disabledvet's picture

Funny. I noticed that too. "Dubai down 22%."

This is why all the wackos in the USA have demanded Al Mailicki be terminated. They're up to their eyeballs in real estate speculation in the ME.

If Iraq comes on line economically speaking (10 million barrels a day) then obviously that means the huge real estate bubble that is the Middle East will get nuked. (Just as happened in 2008.)

I also took not of the huge cancellation in orders for the Airbus A350.

And that Europe has allowed certification of the new Cessna. "The jet that flies itself."

TabakLover's picture

Unreal.  Did no one hear Plosser this morning?  "Rates may have to rise sooner"  In times of sanity that comment = -100 Dow.

Dr. Engali's picture

EVERYBODY knows Plosser is lying. 

NoDebt's picture

"How can you tell when a Fed official is lying?"  Pretty sure everyone knows the rest.

disabledvet's picture

Exactly. "Slowly but surely the Zero Hedge consensus is being formed."

Ancona's picture

That was me.

I cashed in all of my pennies today and bought the DOW with it.

PlusTic's picture

fake mkts...nuthin left to talk about

Bill of Rights's picture
3,137-County Analysis: Obamacare Increased 2014 Individual-Market Premiums By Average Of 49%



Hindenburg...Oh Man's picture

At least gold rose a little more overnight. Of course, as usual, we now have to watch it get relentlessly attacked during U.S. trading hours. Still, at least it moved in the right direction.

Dr. Engali's picture

Just checked the safe and my gold hasn't moved in any direction.

nink's picture

Give your gold to to me. I will look after it for free and put it in my safe and give you a piece of paper with a nice logo on it.  I will put that gold to work for you and give you a huge return on investment doubling the number of pieces of paper you have within a year.


Hindenburg...Oh Man's picture

um, no thanks. I'll keep my gold. So sue me for wanting its fiat value to rise. 

orangegeek's picture

it places the POMO into the markets - again

Hongcha's picture

Dr., I don't see any finality of resolution.  They can ying and yang it as long as they like and just milk the skim, take the vig.

It looks and feels great, to those participating; people spending money, hiring Mexicans again to mow their lawns instead of doing it themselves, et cetera.  Manifold 'benefits'.  Who was it said the early stages of hyperinflation feel great?

the problem is, you are eating out of your master's hand.  When he pulls his hand away, no more.  The entire shebang appears to be connected by wires to the Fed and therefore it's rigged, it is the very definition of 'rigged'.

Yen Cross's picture

   Look @ RUT and NQ. They're up 2x the DOW... 'Shadow Puppet Theatre'. full retard edition

jubber's picture

ALL Europe red

Squid Viscous's picture

Posterboy for this retardo market is Zillow, pissing away $ every qtr, with no long term proprietary/defensible business model...ooh but the rev's are growing so let's pay 25x sales...

jubber's picture

we seem to be going off script, Dow red Russell just dumped 10 handles S&P almost red

craus's picture

I see the USD/JPY aka 102 tractor's work has all been for nought.

Don't they know we don't want or need them anymore?

Go home FEDs you're not wanted.